The Daily Auto Insider: Luxury vehicle sales in the U.S. will be about 24 percent higher in 2005 than in 2003

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Luxury vehicle sales in the U.S. will be about 24 percent higher in 2005 than in 2003, Reuters reported, citing Denny Clements, the group vice president and general manager of Toyota's Lexus division.

Among the reasons for this surge: lower relative prices and a more affluent, aging population.

"Cars are a lot more affordable than they've ever been," Clements said in a speech to the Detroit Automotive Press Association. "For example, in 1989, when Lexus was established, it took over 30 weeks of salary to purchase a vehicle. Now it takes 20 weeks."

In addition, many three- or four-year leases are expiring, which is bringing buyers back into the market, and the baby boomer generation is entering its peak earning years while their children are moving out.

However, Clements said he expects Lexus' market share by mid-decade to remain "about where it is now." But, he added, Lexus will forego boosting sales with incentives "in order to protect the brand's prestigious image," the story said. "Although some of our competitors play heavily in the incentives game, we don't think that's consistent with an aspirational brand," Clements said.

China's passenger car production and sales doubled in the first quarter from a year earlier, the China Association of Automobile Manufacturers said in a statement.

In March, passenger car production doubled to 157,200 units from a year earlier and sales rose by two-thirds to 138,700 units, the association said.

Year-to-date passenger car production rose to 398,000 units and sales rose to 383,400 units, the association added. Total vehicle production and sales, including trucks and buses, gained by half to 1.02 million units and 974,800 units.

China FAW Group Corp. and Shanghai Automotive Industry Corp., China's two biggest automakers, led the production gains, the association said. The former has joint ventures with Volkswagen and Toyota while the latter has separate ventures with Volkswagen and General Motors.

Chrysler Announces Pricing for 2004 Crossfire

Chrysler has announced pricing for its new Crossfire sports coupe, which is scheduled to go on sale "by this summer," the company said in a press release.

Chrysler said it will offer the Crossfire with two transmission options, a standard six-speed manual or optional five-speed automatic with AutoStick. The Manufacturer's Suggested Retail Price (MSRP) for the six-speed manual version is $34,495. The MSRP for the five-speed automatic with AutoStick is $35,570. Both prices include an $875 destination charge.